Hon’ble Prime Minister has launched Stand-Up India Scheme along with an interactive portal startupmitra.in on 5th April 2016 at Noida. The scheme aims at providing hassle free loans to SCs/STs and Women entrepreneurs for undertaking Green Field projects in manufacturing, services or the trading sector. The dedicated web portal aims at providing handholding support, loans from banks and Guarantee support for collateral free loans.

Now, Board of Dena Bank has implemented of the scheme in our Bank.

Salient features of the scheme are as under:

Name of Scheme: Dena Stand-Up India – A Scheme for financing Greenfields projects undertaken by SC/ST and Women Entrepreneurs.

1

Objective

To facilitate bank loans between Rs.10 lakh to Rs. 1.00 crore to scheduled caste(SC),Scheduled Tribe (ST) and Women Entrepreneurs for setting up green field enterprise in manufacturing, services or trading sector.

2

Target Group for financing

Scheduled Caste (SC), Scheduled Tribe and Woman Entrepreneur.

3

Eligibility

a) SC/ST and Woman entrepreneurs above 18 years.

b) Loan under the scheme will be available for only green field project. Green field signifies, in this context, the first time Venture of the beneficiary in the manufacturing or services or trading sector.

c) In case of non-individuals enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.

d) Borrower should not be defaulter of any bank/financial institution.

4

Purpose

For setting up a new enterprise (Green field) in manufacturing, trading or services sector by SC/ST/Woman entrepreneur.

5

Nature of Loan

It should be compulsorily composite loan inclusive of term loan and working capital.

6

Quantum of loan

Minimum: Rs.10 lakhs & Maximum: Rs.100 Lakhs.

7

Margin

Working Capital– 25%

Term Loan – 25% of the project cost. If a State Scheme supports a borrower with 20% of the project cost as subsidy, then borrower should bring minimum 10% of project cost as own contribution.

8

Repayment

Working Capital – payable on demand

Term loan – within 7 years with moratorium of up to 18 months.

9

Credit Guarantee

The Credit guarantee scheme is aligned with CGTMSE norms. The Credit Guarantee Scheme for Stand-Up India (CGSSI) will be operationalised soon.

10

Security

a) Primary – Assets created out of Bank finance.

Collateral

a) No collateral security or third party guarantee to be insisted if loan is covered under Credit Guarantee scheme.